1. Fossil Fuels

5. Match Dominant Primary (Left) with Energy Uses (Right) oil-based fuels natural gas coal nuclear power transportation industrial processes space heating and cooling generation of electrical power

6. How Fossil Fuels Form

8. Much Oil is Consumed in the US; Is Much Produced?

9. Concerns With Oil Who has the oil? What does oil really cost? How long will it last? Outlook for unconventional liquids?

10. Where is the Oil?? CountryProven Reserves (billion barrels) Canada**178** Mexico11 USA21 Brazil13 Venezuela**99** Norway7 Azebaijan7 Kazakhstan30 Russia60 Iran**136** Iraq**115** Kuwait**104** Qatar15 Saudi Arabia**267** United Arab Emirates**98** Algeria12 Angola9 Libya44 Nigeria36 China16

11. Where is the Oil?

15. Problems from Foreign Oil Dependency Variations in cost of purchases Threat of supply disruptions Limitations of nonrenewable resource

16. Impacts of Foreign Oil Dependence Trade imbalances Military actions Pollution of oceans Coastal oil spills

17. US Oil Production and Consumption

18. What is the “Cost” of Imported Oil?

20. What a Barrel of Persian Gulf Oil Really Costs U.S. Consumers $100 in initial costs + $61 for military support services = $161 per barrel of oil What do you think of this? Do we think about diamonds, coffee, pharmaceuticals, bananas the same way?

21. Adjusting to Increasing Prices: 1973, also today.. Increase Domestic Production: –Increase exploratory drilling –Alaska pipeline –Re-open closed fields Decrease Consumption: –Auto efficiency standards (CAFE) –Other efficiency goals (ie., insulation, appliances) –Focus on alternatives (research, tax breaks) Protect Future Supplies: –Strategic Oil Reserve

22. What are non-conventional liquids? Heavy Oil: –Dense, viscous –More technology to recover: steam, solvents –Currently producing (Venezuela) Oil Sands/Bitumen: –1-20% in sand –Does not flow –High impurity load –More technology to recover –Economic when oil > $30/barrel –http://www.youtube.com/watch?v=84zIj_EdQdMhttp://www.youtube.com/watch?v=84zIj_EdQdM Shale Oil: –Not crude oil, but kerogen (oil precursor) –Heat – kerogen breaks down into “oil-like” substance –Plentiful –Economic when oil > $70-95/barrel Synthetic Fuel: –Start with coal, natural gas, biomass –Chemistry to get liquid fuel

24. How Long Will it Last? The Hubbert Curve

25. How Long Will it Last? Likelihood of Major new finds small Problem: –World use: ~ 86 million barrels/day –Proven reserves: ~ 1300 billion barrels At current rates, proven reserves are about 30 year supply Economics takes over: price will rise, new production Will there always be new sources?

26. Hydraulic Fracturing Forcing pressurized fluid into rocks for the purpose of cracking them open to remove petroleum, gas, or other substances. Known as induced hydraulic fracturing, commonly known as fracking and hydrofracking. First done in 1947, but common practice first started in 1990s in Texas Some believe this is a great option to make the US less reliant or not reliant on foreign energy sources, but others disagree, as the gas will be sold internationally. Environmental damage: possible contamination of ground water, air pollution, surfacing of chemicals used to ground surface, spills, etc. 650 of the 750 chemicals are known carcinogens http://www.youtube.com/watch?v=e2mA5poDocY&feature=related http://www.youtube.com/watch?v=WlCdbVbWoHk&feature=related http://www.youtube.com/watch?v=8BBlf0_MYCA&feature=relmfu